AEW UK REIT targets £60m equity raise

By James Buckley - Monday, September 11, 2017 9:57

AEW UK REIT plans to raise up to £60m via a 12 month share issuance programme, the company said this morning.

The issuance programme will begin with an issue of ordinary shares, currently expected to close around mid October 2017. The initial issue is expected to be undertaken by way of a placing, offer for subscription and intermediaries offer.

The company is seeking to raise a target of £40m under the initial issue, with the ability to increase the size of the initial issue, up to a maximum of £60m, if the directors, on advice from AEW UK Investment Management, believe it is appropriate to do so in light of the pipeline of properties and the expected speed of deployment of the net proceeds of the issue. 

The initial issue price will be set by reference to the prevailing net asset value per share and share price at the last practicable date prior to the publication of the prospectus in relation to the initial issue and issuance programme.

The target initial issue size has been set with regard to the pipeline of available stock reviewed by the investment manager at yields which would be accretive to the company’s current portfolio.  the investment manager remains focused on searching for properties in locations that exhibit healthy levels of tenant demand and low levels of supply for competing stock. 

jbuckley@costar.co.uk

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